Despite the postponement of a high-level trade and investment mission from China last week, the Chinese government is expected to firm up financing for three big-ticket Philippine infrastructure projects for rollout this year, the country’s chief economist said.
Also, Socioeconomic Planning Secretary Ernesto M. Pernia is optimistic of more foreign investments this year, as he visits Japan this week to also firm up earlier commitments made by the Japanese government to participate in infrastructure projects.
Sought for comment regarding the Philippine Statistics Authority’s report last week showing that foreign investment pledges dropped 18.9 percent year-on-year to P152.4 billion in the second half of 2016 or the first six months of the Duterte administration, Pernia told reporters that investors were likely on wait-and-see stance amid the then transition in the administration.
Pernia, who heads state planning agency National Economic and Development Authority, said President Duterte’s rhetoric, which was critical of some investor-countries such as the United States and the European Union, among others, had nothing to do with the decline in commitments made before investment promotion agencies.
“I don’t think rhetoric had much of an impact. It’s more of the change in administration. Some investors were on wait-and-see,” Pernia said.
The Neda chief is optimistic of more investment inflows this year, saying he will be in Japan on March 1 to 2 to talk to potential investors as well as the Japanese government for possible infrastructure financing, as discussed during the recent visits of Duterte to Japan and Prime Minister Shinzo Abe to the Philippines.
Pernia said the Japanese government already expressed interest to fund the proposed subway system in Metro Manila as well as a number of bridges that will cross Pasig River, all aimed at reducing traffic congestion in the metropolis.
Also, Pernia noted of the Japanese participation in the 38-kilometer North-South Commuter Railway (NSCR) that will connect Malolos, Bulacan to Tutuban in Manila. Funded by a $2.42-billion official development assistance (ODA) from Japan, the bidding for the construction of the NSCR is slated for next year. The project will start construction in 2019 and begin operations by 2021 or 2022.
Even as the Chinese government appointed a new commerce minister that led to the postponement of the arrival of a high-level economic delegation to Manila last Friday, Pernia said China will push through with funding for the three projects that Duterte’s economic managers pitched in Beijing during a two-day mission last month.
The three priority projects eyed for Chinese financing will be the $3.01-billion south line of the North-South Railway, the $374.03-million New Centennial Water Source-Kaliwa dam project in Quezon province, as well as the $53.6-million Chico River pump irrigation project in Cagayan and Kalinga provinces.